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Gold prices fell significantly today, while reaching the lowest level since mid-2010, as a stronger dollar and a rise in price of shares weakened investment appeal of the precious metal. Rising dollar helped the news that rRespublikantsy won the first important victory in Kentucky and West Virginia in the midterm elections in the US Congress. This is evidenced by the results of common rapid survey of Americans leaving the polls. According to preliminary data, the Kentucky Republican minority leader in the Senate, Mitch McConnell took over his rival from the Democratic Party Alison Landergen Grimes. In West Virginia Republican candidate Shelley Moore Capito Natalie Tennant ahead in the race for the seat vacated by retired Democratic Senator Jay Rockefeller - representative of the famous dynasty of industrialists and financiers. Experts believe that the opposition Republican Party has a good chance that the results of these elections for the first time since 2006 to control the upper house of Congress.
Quotations decrease in gold also accelerated due to start technical sales after prices fell below the key support level near $ 1160 to provoke new applications for sale. Note, gold prices are under strong selling pressure in recent weeks amid speculation that the first time in eight years, the Federal Reserve closer to raising interest rates after the last month of its bond-buying program, also known as quantitative easing.
We also learned that the world's largest reserves of the gold-exchange-traded fund SPDR Gold Trust on Tuesday fell to 738.82 tons, the lowest level since September 2008. Recall that it was then, the largest US holding Lehman Brothers announced its bankruptcy, that was the beginning of a major international financial crisis.
"In the future, very few favorable factors. Despite the infusion of trillions of dollars into the economy in recent years, most central banks are concerned about deflation rather than inflation. In addition, the growth of the American stock market investors diverts funds from other markets, including gold, "- said analyst Edward Meir FCStone.
Meanwhile, adding that traders in Shanghai reported a decline in prices of local versus international. While buyers in Asia will continue to show restraint, gold prices will not easily find the bottom, analysts Commerzbank. This situation will not change even strong demand from retail investors in North America and Europe, the bank assured.
The cost of December gold futures on the COMEX today dropped to 1146.10 dollars per ounce.
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